M2M Management has launched the first physical and futures maritime freight fund, Global Maritime Investments Ltd (GMI).
GMI offers investors the opportunity to secure superior risk adjusted returns in a complex and mis-priced marketplace - returns which are unlikely to be correlated with existing portfolios. Freight rates (the price to ship seaborne commodities) represent an increasing proportion of the delivered price of commodities, and this new Fund enables investors to tap into an emerging and rapidly expanding market.
In recent years, there have been dramatic structural changes to the freight market leading to a significant increase in the volatility of shipping rates and the liquidity of related derivatives. These changes have highlighted trading opportunities which Global Maritime Investments Limited will seek to capitalize on.
Joint Managing Director Steve Rodley said: 'Our management team has been successfully exploiting these opportunities for many years. The scale of the recent changes to the market, coupled with our rigorous and disciplined attitude to freight trading and risk management, provides investors with a very exciting investment vehicle'.
M2M's investment managers have developed the platform to enhance trading opportunities through their industry leading pricing and integrated risk management systems.
GMI is designed to provide an important investment opportunity to the established investment community. With the initial funding now in place M2M are confident of the ability to accommodate up to USD 200m of assets under management with this strategy.
The Fund will be managed by M2M from offices in London and Greece. These offices employ a dedicated team of specialist freight traders, ship financiers, analysts, risk managers and hedge fund professionals. The investment managers include Steve Rodley (ex-Panamax manager of BHP Billiton) and Stuart Rae (ex-Freight portfolio manager for Euro-Maritime Chartering Limited, a leading independent freight trading company).
M2M Management Ltd is authorised and regulated by the FSA.